Calculating annual interest for tax return

jovial32

I have a nationwide account that pays interest annually in October each year and I'm trying to work out how much to declare for a particular year between 5 April each year.  So assuming it's for 2024/25 and it was paid in October 2024 - do I just count the proportion of the annual interest between April and October for that tax year?  Or does the whole amount count for that tax year?

FrugaiMacDugal

No breakdown for months, if you get the interest in October 2024, then that is in the 24/25 tax year.

Tax year is 6th April - 5th April.

masonic

As this is the ISAs and tax free savings section of the forum, it's worth mentioning that interest on ISAs and some other tax free savings products should be excluded from the figures you declare.

Ayr_Rage

As above, you declare what is paid in October.

Nationwide will provide a printed certificate of interest on request.

badger09

Ayr_Rage said:

As above, you declare what is paid in October.

Nationwide will provide a printed certificate of interest on request.

Or you should see the amount of interest credited, either online or on app. 

Keep_pedalling

Is this actually an ISA or have you accidentally posted your question on the wrong board? 

jovial32

Thanks.  No it's not an isa.  It's not for a tax return though - it's for some funding I've applied for and they want to know "all household income for April 2024 to 2025".  As I moved the Nationwide money in May 2024 I now have two sets of interest for the same amount of investment!  The second set of interest in the new account is from May 2024 until April 2025.  Whereas the Nationwide interest, paid in October - only 1 month's worth of it was from April 2024 to 2025 - so effectively I'd be declaring double interest!  Which obviously I don't want to do.  All I can think is that I ask Nationwide for a tax certificate from April 2024 to April 2025.

FrugaiMacDugal

You add the two lots together for total interest.

You should've already had interest statements for 24/25, no tax certificates now, interesr paid gross,

molerat

The interest is accountable when it is paid and not when it was theoretically earned, if you wanted it that way you should have chosen a monthly interest account.

eskbanker

jovial32 said:

Thanks.  No it's not an isa.  It's not for a tax return though - it's for some funding I've applied for and they want to know "all household income for April 2024 to 2025".  As I moved the Nationwide money in May 2024 I now have two sets of interest for the same amount of investment!  The second set of interest in the new account is from May 2024 until April 2025.  Whereas the Nationwide interest, paid in October - only 1 month's worth of it was from April 2024 to 2025 - so effectively I'd be declaring double interest!  Which obviously I don't want to do.  All I can think is that I ask Nationwide for a tax certificate from April 2024 to April 2025.

Not sure I'm following what was moved where and when, but ultimately if you received two separate interest payments during the tax year in question, even if they covered more than 12 months between them, then you should total them if you're being asked for "all household income for April 2024 to 2025".  If you have enough capital for this duplicated interest to be a material issue, do you actually need the extra funding?

saajan_12

jovial32 said:

Thanks.  No it's not an isa.  It's not for a tax return though - it's for some funding I've applied for and they want to know "all household income for April 2024 to 2025".  As I moved the Nationwide money in May 2024 I now have two sets of interest for the same amount of investment!  The second set of interest in the new account is from May 2024 until April 2025.  Whereas the Nationwide interest, paid in October - only 1 month's worth of it was from April 2024 to 2025 - so effectively I'd be declaring double interest!  Which obviously I don't want to do.  All I can think is that I ask Nationwide for a tax certificate from April 2024 to April 2025.

Not super clear - is Nationiwide the first or second bank, how much money in the first account, how much in the second, which year are you talking about when you refer to Oct? 

The principle is still that it doesn't matter how long you had the money, only how much interest was actually paid during those dates, and a tax certificate would reflect that.